Park City, UT (PRWEB) September 28, 2013
Today, Zane Benefits, the number one online small business health benefits solution, published new information on COBRA vs health insurance marketplaces.
According to Zane Benefits’ website, one of most popular options for many laid off employees is to continue their employer-provided coverage for up to 18 months under COBRA. Another option for workers is to purchase an individual or family health insurance policy, although this option is less-known and less-utilized. In 2014 there will be a third option for employees ending employment: purchasing a guaranteed-issue individual or family health plan through the new individual health insurance marketplaces.
COBRA provides certain employees, retirees, spouses, former spouses, and dependent children the right to temporarily continue their employer-sponsored health benefits.
In order to participate in COBRA, the former employee usually pays the full cost of the premium or benefit plus up to a 2% administration fee for a maximum of 18 months. This is usually expensive.
The new public individual health insurance marketplaces (also called exchanges) are publicly-run online stores for health insurance, which will be a viable option for laid-off employees, because of the following key provisions of the ACA favoring individual health insurance:
Premium Tax Subsidies
Essential Health Benefits
Metallic Tiers of Coverage
When it comes down to the bottom line, former employees will likely compare the cost of COBRA vs. individual health insurance through the marketplaces. In the past, COBRA has been very expensive to employees, and this likely won't change, so employees might turn to the public health exchanges.
About Zane Benefits
Zane Benefits was founded in 2006 to provide a revolutionized SaaS (Software-as-a-Service) administration platform ("ZaneHRA") for defined contribution health care. The flagship software provides a 100% paperless administration experience to small businesses and insurance professionals that want to offer better health benefits without a traditional group health insurance plan at lower costs. For more information about Zane Benefits, visit http://www.zanebenefits.com.